doi.org/10.52340/eab.2025.17.01.02

A new term has emerged in economic science - digital economy. At the current stage, digital data has become the leading factor of production, and its large-scale processing and analysis results can significantly increase production efficiency and output levels.
The article discusses the impact of financial technologies on financial markets, in particular, their digital transformation. Financial institutions are modernizing and simplifying their It infrastructure, central banks are developing their own digital currencies, and regulation in this area is evolving. An important trend in the development of financial markets is the focus on achieving the goals of sustainable development, a green economy and green finance. The article discusses the mechanism for financing the “Green” economy (“Green” bonds, IPOs).
Particular emphasis is placed on various types of crypto-assets and digital currencies, both including those issued by central banks and cryptocurrencies, along with their associated risks, advantages and disadvantages.
The article notes that in order to make correct and effective decisions to ensure financial stability, regulators consider and analyze a whole palette of theoretical approaches that complement each other. The importance of financial stability indicators is emphasized, since the diagnostics of financial stability is a key component of the mechanism for maintaining it.
Ensuring financial stability includes, first of all, regulation of the activities of systemically important financial institutions. In Georgia, as in developed countries, the capital of commercial banks is subject to stringent and precise regulation. The capital requirements defined for the Georgian banking sector are based on the Basel III standard and the Regulation and Directive of the European Parliament and of the Council (CRR – CRD package).The counter-cyclical capital buffer is a key tool of macro prudential policy.
The Basel Committee on Banking Supervision has developed a new package of international reforms – Basel IV, which makes operational risk assessment standards less conservative.
Technological, environmental and geopolitical changes will greatly influence economic development in the near future. Digital technologies and artificial intelligence technologies will continue to develop. The financial market will become more technological, new types of financial instruments will appear. Relationships and processes may become more complex, making the financial market more challenging for ordinary users of financial services to understand, and deepening the divide between skilled and unskilled investors, as well as between retail and corporate segments.
In addition to financial risk, cyber risk will become increasingly important for financial stability, partly due to the rise of fintech companies that are more risk tolerant than traditional financial institutions.
Thus, financial markets are evolving with have new directions of development, new types of financial institutions and financial instruments, and new technologies while retaining their traditional role in the economy by distributing resources and increasing public welfare. The financial market has a significant impact on the pace of development, directions and trends of the country's economy.
The article concludes by proposing several measures to achieve sustainable development and enhance the contribution of the financial market in Georgia. Additionally, it highlights the ongoing importance of increasing the level of financial education of the population.

Keywords: Digitalization of the economy, „Green“ economy, “Green” finance, crypto-assets, financial stability, regulation.
JEL Codes: E44, G21, G28, G32.

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